Kerrville City Council Workshop - December 9, 2025

On December 9, 2025, at 4:00 PM, the Kerrville City Council held a workshop at City Hall, 701 Main Street. Staff presented on the new Texas cultural arts district designation, long-range water supply options, and a proposed restructured stormwater fee; the council then moved into executive session. No minutes were available for this session, so this summary is based on the agenda and transcript.

Public Comments & Testimony

• No members of the public signed up to speak.

Cultural Arts District Designation (Item 2A)

• Economic Development Manager Kelly Hagemeier and Council Member Delane Sigerman presented. Kerrville was approved by the Texas Commission on the Arts (the agenda item named the Texas Arts and Cultural Commission) for a Cultural Arts District designation, one of only 57 such designations in Texas. The program was created by the Legislature in 2005 to stimulate economic development, tourism, and civic pride.
• Grant opportunities include the annual Cultural District Grant (due every June 15; maximum $250,000, minimum $3,000, 1:1 match, and can include capital improvements), Arts Respond (projects between April 1 and August 31), and Arts Create (operational support in odd-numbered years).
• A draft resolution and bylaws would create a Cultural Arts District Advisory Board with two-year terms, officers, a city secretary/designee, staff liaison, and ex officio members. Sigerman noted that 12 people have been meeting unofficially while the resolution lists seven, so an amendment to adjust board size may be needed.
• Staff and council discussed pursuing the first grant application due January 15, 2026, and possibly amending the district map to include venues such as the Cailloux Theater and to align with the 2050 downtown arts district plan.

Water Supply Options (Item 2C)

• Executive Director Stuart Barron introduced HDR consultants Zachary Stein and Charlie Bert Burton. HDR updated three supply strategies from the 2018 long-range water supply plan using new test-well data and current costs. A council member noted the city currently runs about 80-90% surface water; HDR's severe-drought projection showed groundwater and reuse carrying much of the system.
• Remote well field: 1 MGD from an Ellenberger formation site north of the city; would require 4,563 acres of contiguous groundwater leases, four active wells plus a contingency well, and a 6.1-mile, eight-inch transmission line. Total project cost $69.5 million; annual cost $5.3 million; unit cost $4,707 per acre-foot. Permitting/implementation was rated high, and obtaining contiguous leases was described as very challenging.
• Direct potable reuse: advanced treatment of wastewater effluent with reverse osmosis, brine evaporation ponds, and an optional ASR well; assumed 0.5 MGD. Total project cost $16.2 million; annual cost $2.7 million; unit cost $4,739 per acre-foot. Permitting/implementation was rated high; TCEQ coordination and a pilot treatment process would be required.
• Indirect potable reuse, north route: 0.5 MGD from the reuse pond to the water treatment plant using an existing reuse pipeline to the Kerrville soccer fields plus 1.6 miles of new pipeline, discharging into Elm Creek and conveying to Nimitz Lake. Total project cost $3.1 million; annual cost $253,000; unit cost $452 per acre-foot. Permitting/implementation was rated low. A bed-and-banks water rights permit was recommended so discharged water remains the city's and is not subject to downstream senior water-right calls.
• Indirect potable reuse, south route: 0.5 MGD via an existing reuse pipeline to River Hills golf course plus 4.1 miles of new pipeline; total project cost $7.6 million; annual cost $614,000; unit cost $1,096 per acre-foot. Permits were expected to be relatively easy, but the route needed more new infrastructure and right-of-way.
• Council members raised questions about whether the 2018 plan's remote well field is still realistic, with some saying the plan needs revision and the remote option may be effectively off the table. Staff said the city is not currently overcommitted on reuse water, but has reserved 500,000 gallons per day for future city use and cannot allocate additional reuse water during summer months.
• The already-installed Ellenberger well was described as increasing the reliability of the city's existing groundwater permits (roughly up to 4 MGD) rather than adding new supply. A deeper local well below the Ellenberger was also discussed as potential redundancy, though it would not add new permitted gallons under the groundwater district's 80,000 gallons per surface acre rule.
• Council expressed informal consensus in favor of the indirect potable reuse north route (Elm Creek) as the most cost-effective option, while also supporting further study of an additional local well for drought/flood redundancy.

Stormwater Fee Proposal (Item 2B)

• The stormwater item was taken out of order after the water supply discussion because the city's consultant was not present; Stuart Barron gave a partial overview and said the consultant would return later. The city's 2019 stormwater master plan identified about $10-12 million in projects, with about $8 million in work remaining after earlier street/drainage bonds.
• Three fee scenarios were outlined: a flat-rate fee; a fee per equivalent residential unit (ERU), with an average Kerrville residence equal to 4,876 square feet of impervious cover; and a tiered residential structure by home size.
• Current rates are $1/month residential, $2/month multi-unit, and $3/month commercial. Under the flat-rate scenario, single-family residential fees would rise to $2.72 in FY 2026 and continue rising to cover costs by 2030; multi-unit fees would rise from $2 to $5.41 in FY 2026 and $14.92 by 2030. The ERU-based and tiered scenarios would charge $2 per ERU, with tiered small homes at about $1.50 in 2026 and large homes at about $2.50.
• Staff compared these with other Texas cities, saying Kerrville would remain below several peers for residential bills and that larger commercial properties would pay more because their impervious cover is greater. Current residential stormwater revenue was stated as $97,920; proposed scenarios would generate roughly $139,000-$182,000 for the residential class in the presented comparison.
• The presentation will be circulated for a later workshop; no decision was made.

Executive Session

• The council moved into executive session under Texas Government Code Sections 551.071 and 551.072 to discuss the agenda item on using eminent domain authority for the potential acquisition of properties known as Tivy Mountain. No open-session action or outcome was reported in the transcript.

Key Outcomes

• No formal votes were taken on Items 2A, 2B, or 2C.
• Council expressed informal consensus to continue pursuing the north-route Elm Creek indirect potable reuse option and an additional local well for redundancy.
• The stormwater fee presentation will be sent to council and followed by a fuller consultant presentation.
• The cultural district advisory board resolution and bylaws remain pending for future action; a first grant application is due January 15, 2026.
• Council entered executive session; no action on items discussed there was reported.